Selling a business will not happen overnight. Your business is an asset and, before you even start negotiating with investors, you should increase the value. To do that you need to develop a growth plan that will expand your customer base and improve the valuation of your business over time.
Furthermore, having a growth strategy is a transferable element itself that increases the value of your company. When you have a clear vision for the future and a well-thought-out plan to get there, you show your prospective investor that this is a business with a positive outlook.
But what does business growth even mean? And how do you prepare a growth plan?
Growth is all about expanding your customer base and increasing your revenue while being able to generate and sustain profit over time.
Growth doesn’t come easy in today’s competitive business landscape. You need a plan and focus on implementing it. There are nine basic steps you need to take to map your growth strategy.
1. Set your strategic goals. Choose three to five goals that you want to achieve in the next three years.
2. Make a SWOT analysis. Create a matrix listing your Strengths, Weaknesses, market Opportunities and Threats (SWOT).
3. Know your customer. Who are they? Describe the different segments. What are their needs? What influences their buyer’s decision?
4. Prepare a competitive analysis. Who are your main competitors? What is their market share? How is their product different than yours? Competitive analysis should also show how you can gain a competitive advantage, in other words, how you can differentiate your business from the competition.
5. State your value proposition. What is the value that your company brings? Why would customers even bother to consider your product? How would you describe your product value and why would anyone pay attention to you?
6. Set your objectives. Break down your strategic goals from step #1 into business objectives. Each goal should be described using no more than three mutually exclusive objectives.
7. Business tactics or growth strategies. What are the tactics that will help you achieve your objectives, therefore reach your strategic goals? These are your strategies for growth.
8. Put together an action plan. You have divided each goal into objectives and then into tactics. Now, it is time to define the actions or steps that will take you to your goals. Describe what, how, when and who will perform each action.
9. Financials and resources. Prepare a profit & loss projection, a cash flow statement and describe any resources necessary to implement your plan.
That’s it! These were the 9 steps you can take right now to put together a business growth plan. Remember, growth is all about strategy, and a good strategy is about action. A growth strategy points your business in the right direction. But the real value comes from putting in work to implement the step-by-step growth plan.
If you need a team of experts who can help you with company valuation or develop a coherent growth plan, don’t hesitate to contact us. We’ll be happy to discuss your needs and be your strategic partner in growing your business.